David Ross, Leader of Fife Council, has voiced his concerns over a potential 'bedroom tax' funding gap.

Councillor Ross said he was unsure if the funding that has been set aside by the Scottish Government to offset the impact of the tax will actually be enough for Fife.

In a statement, Mr Ross continued: "While we very much welcome the fact that the Scottish Government has made this additional £15 million available on top of the £20m already committed. What is not clear is how much Fife will receive, and when we can expect to receive it.


"We also need to know from the Scottish Government how we are expected to pay it out. We are waiting to hear whether the existing upper limit on Discretionary Housing Payments will be lifted or whether the Scottish Government will bring in new regulations allowing local authorities to increase housing revenue account funding and offset rent arrears.

"Either way, at the moment the Council has neither the money nor the powers to fully mitigate the impact of the 'Bedroom Tax' as we want to do. People are in urgent need of these funds right now and I'm concerned that more of our tenants will fall into arrears while we wait.

"We estimate we could still be facing a shortfall of £1.3 million if the funding is distributed on the same basis as Discretionary Housing Payments (DHP) and demands on the DHP continue to increase."

It is understood that Mr Ross has written to Scottish Finance Secretary John Swinney about his concerns, as well as to Lord Freud, Minister for Welfare Reform.

(JP)